Applied Materials Inc. shares saw a rise in after-hours trading on Thursday as the maker of semiconductor-manufacturing equipment reported better-than-expected earnings for the third quarter. The stock initially declined by 0.5% during regular trading hours but gained as much as 3% after hours, closing the day at $137.59.
Year to date, shares of Applied Materials have experienced a significant increase of 41.3%. This growth surpasses the gains of the PHLX Semiconductor Index (+36.1%), the S&P 500 (+13.8%), and the Nasdaq Composite Index (+27.2%).
In the fiscal third quarter, Applied Materials reported a net income of $1.56 billion, or $1.85 per share, compared to $1.61 billion, or $1.85 per share, in the same period last year. Adjusted earnings, which exclude share-based compensation and other items, were reported at $1.90 per share, slightly lower than the $1.94 per share reported in the year-ago period. The company’s revenue for the quarter declined to $6.43 billion from $6.52 billion in the previous year.
Analysts had anticipated adjusted earnings of $1.66 per share on revenue of $6.06 billion, according to FactSet, based on the company’s own forecast of $1.56 to $1.92 per share in earnings on sales of $5.75 billion to $6.55 billion.
Looking ahead to the fourth quarter, Applied Materials projects adjusted earnings of $1.82 to $2.18 per share on sales ranging from $6.11 billion to $6.91 billion. Analysts surveyed by FactSet had predicted adjusted earnings of $1.60 per share on revenue of $5.87 billion.
Gary Dickerson, CEO of Applied Materials, expressed confidence in the company’s future, stating, “Over the past several years, we have focused our strategy and investments on key technologies to accelerate the Internet of Things and AI era, enabling us to consistently deliver strong results. We are well positioned for sustainable outperformance in 2023.”
Overall, Applied Materials’ robust earnings and positive outlook reflect the company’s commitment to driving innovation and capitalizing on emerging technologies.